There is a problem that India's renewable energy boom has been quietly running into — and it has nothing to do with solar panels or wind turbines. Those are being added at an extraordinary pace. The problem is getting the electricity those installations generate from the remote deserts of Rajasthan and the windy coasts of Gujarat to the factories, homes, and data centres that need it.
That problem now has a price tag: ₹9 lakh crore. And it needs to be solved by 2032.
THE SCALE OF WHAT IS BEING BUILT
India's power transmission infrastructure is headed for a massive investment cycle, with nearly ₹9 trillion in government-committed transmission capex expected through 2032, according to a report by Kotak Neo. The country's clean energy transition is no longer just about adding solar parks and wind farms — it is equally about building the grid infrastructure needed to move electricity efficiently across regions.
The National Electricity Plan for Transmission aims to increase inter-regional transmission capacity from the current 119 GW to 143 GW by 2026–27 and further to 168 GW by 2031–32. The plan includes the addition of 191,474 circuit kilometres of transmission lines and 1,274 Giga Volt Ampere of transformation capacity at voltage levels of 220 kV and above over the next decade. To put the circuit kilometre figure in perspective: 191,474 kilometres is roughly five times the circumference of the Earth. India is planning to lay that much new transmission infrastructure in a decade.
India's installed renewable energy capacity stood at 226 GW as of June 2025 — nearly three times the 76 GW recorded in 2014. Over the next decade, the country is expected to add another 470 GW of solar and wind capacity, while power demand is projected to grow at a CAGR of 6.4% through 2030. (Investing.com)
The Kotak Neo report put it plainly: "India is adding 470 GW of renewable capacity. Every watt of that power needs wires, transformers, substations, and transmission lines before it can reach the grid." (Investing.com)
POWER GRID CORPORATION: THE ANCHOR OF THE BUILDOUT
At the centre of the transmission buildout is Power Grid Corporation of India, whose actual capex in FY26 exceeded its revised target and reached ₹35,540 crore. The company has planned capex of ₹1.08 lakh crore between FY26 and FY28, with an estimated business pipeline of ₹3.06 lakh crore through FY32.
Of the total estimated investment, ₹3.91 lakh crore is earmarked for the Inter-State Transmission System, which enables power transfer across state boundaries and plays a pivotal role in national grid stability. The remaining ₹99,296 crore is directed toward intra-state systems. As per the NEP pipeline, of more than ₹9 lakh crore of projects to be completed by 2032, only projects worth ₹3 lakh crore have been allotted — the remaining ₹6 lakh crore worth of projects are yet to be awarded.
That means the next four years will see the bulk of the awarding activity — creating a significant and sustained order flow for equipment manufacturers, EPC contractors, and transmission developers.
THE HVDC REVOLUTION: MOVING POWER ACROSS THOUSANDS OF KILOMETRES
One of the most consequential technology shifts embedded in the transmission plan is the aggressive adoption of High Voltage Direct Current lines.
HVDC systems will play a critical role, with the global market expected to grow from $15 billion to $31 billion by 2035. India is leaning heavily on HVDC lines to connect large renewable farms — often located in remote geographies — to cities and industries, as this technology sends power over long distances with minimal losses.
33.25 GW of HVDC bi-pole links are planned, emphasising the integration of new technology and cross-border interconnections with neighbouring countries including Nepal, Bhutan, Myanmar, Bangladesh, and Sri Lanka. (ScanX)
THE RISKS: WHAT COULD SLOW THIS DOWN
The Kotak Neo report cautioned that execution delays, land acquisition challenges, raw material price volatility, and timing of HVDC orders remain key risks for the sector. "This is not a one-time capex cycle. It is a decade-long infrastructure buildout," the report noted.
Land acquisition is the most historically persistent of these risks — India's infrastructure sector has lost years and thousands of crores to legal disputes and community opposition over land. The HVDC constraint adds a global supply chain dimension: global supplies of transmission equipment have tightened, with the cost of equipment set to rise more than 14% annually, according to Federal Power Secretary Pankaj Agarwal. To address this, the government is actively pushing for local manufacturing of critical transmission equipment to buffer supply and price shocks.
THE INVESTMENT OPPORTUNITY
Moody's estimates that India's 500 GW renewable target by 2030 requires $190–215 billion of investment, with an additional $150–170 billion required for electricity transmission, distribution, and energy storage to support the incremental renewable capacity.
The beneficiaries of this buildout span a wide supply chain — transmission line manufacturers, transformer producers, substation equipment makers, EPC contractors, and the equipment financing institutions that will fund these projects. The next four years will see significant opportunities across transmission lines, substations, smart grid technologies, and metering systems, indicating a robust and expanding market for key players in the sector.
India's renewable energy revolution has always been about the sun and the wind. The decade ahead will reveal that it was also, equally, about the wire.
